The sole purpose of your life to keep your credit card debt down is that if you don’t drop out of having a lot of debt on your credit card, you need to live a financially viable life because it can start to affect other parts of your life.

As much as credit cards are a convenient spending tool, if they are not taken care of, they are twice as much trouble and can give you problems that you could not have imagined when you first applied for the card.

Credit cards are becoming the tools you have in this day and age, booking concert and theater tickets over the phone, and buying goods at cheap prices on the internet, but what you remember most is that credit cards are higher than regular APR’s than other debts such as personal loans and mortgages. There are some simple, common sense practices that can be applied to your credit card and the way you spend it.

First, you can try to pick a little of the purchases you make, we all know how convenient credit cards are for purchases where you don’t have cash ready, but buying items that your income can simply support is a bad habit. It has a new model out and what you have will cost less than half the new price.

A credit card is a double-edged sword. People are in plastic cracks. They buy things that don’t have to impress people they don’t like. Plastic money is crazy about Americans. Card ads are everywhere. How bad is that? According to some statistics, the average American household has more than $15,000 in credit card debt.

I’m not claiming that anyone should have a credit card. If you can’t control your cash, you definitely can’t control your plastic spending. I teach classes at the University of Finance and Peace and we strictly preach debt freedom and get rid of your cards. Why is that? Because most people spend time carrying a credit card with them. In addition, the same people do not repay the current fee and carry the balance. Therefore, put them back into credit card debt.

There is a myth that trust is needed. It is a lie. You don’t need credit to survive. It makes it easy to travel, rent a car and book hotels. But the truth is that you can do it with a debit card. Buy now, pay the syndrome after that is why so many people are in debt. This is how people are trapped and on the road to financial disaster.

Just responsibility and discipline.

I use my card every day. But I pay back my balance every month. It is foolish to pay interest. I still don’t think most people should own or use a credit card unless they are responsible and trained to pay it back every month. If you can’t control your cash, as mentioned earlier, you do the worst thing with a credit card.

Listen to me again. It would be foolish to pay interest on what you buy. If you can’t repay the balance, don’t buy dern stuff. Do you really need it anyway? Or does happy hour matter? Leave it at home.

Not for emergencies.

They should not be used for emergencies. This is an excuse for people to use because they are not financially ready. What is an emergency? You pull out your plastic to pay for these things and start racking up that balance. You can’t pay the balance and another “emergency” pops up the following month. If you don’t have emergency funds, you’re setting yourself up for failure.

Here are five ways to actually use your credit card:

1. To make it $$$

Wealthy people use cards to expand their businesses. They use it to $$$. This is the key! They generate income with their cards and pay it back. They hate to pay interest. I am an affiliate marketer and I use my credit card for marketing and I pay the balance every month.

There is a daily limit on the use of debit cards. But not a credit card, I don’t need a limit on my spending. My credit card helps me make money. If your plastic can help you increase your income, please use it by all means.

2. Not for personal use

If you pay the balance by the end of the statement, don’t buy it. If you couldn’t buy it in cash, you won’t get it. I know you will pay it back later. If that’s true, then this credit card debt wouldn’t all be floating around. Don’t carry it with you. Just having it will give you the urge to buy one. Staff are what kill people financially.

Broken people pay fees and interest rates because they can’t afford to buy in cash. It’s the result of not having enough money to buy what you want. Fees and interest are added. You’re just giving money when you can’t repay it before the date of the statement.

Here’s a trick I use. I always have a monthly budget. I know where every dollar is going. In fact, I create a positive balance on my card. Then I stick to my budget and I don’t borrow the balance.

3. Personal Bookkeeper

This is why I use a credit card every time I buy. You will receive your statement at the end of the month, quarter, or year. I look at where my money went and they add graphs too. I download the statement to my quickbook software and give my tax guy a year-end statement. Boom accounting is done.

4. Benefits, benefits, rewards, and points

The icing on the cake is all the perks, privileges, rewards, and points you get using your card. I’m a cashback guy and I’ll get a lot of cashback this year (I’ll save it in my investment account). My business credit card gives me all the perks. I get points, miles and discounted VIP event tickets and I don’t have to pay exchange rate fees when I travel around the world.

I receive travel insurance, car rental insurance to save $$$ on car rental. Plus, everything is free when you pay your balance. If you use your credit card correctly, you can cash in your rewards

5. Start a business

I am careful not to use your credit card to start your business. Especially if you are a beginner with no experience in the field you are going to enter. The risk is too great. Now I used my credit card to invest in my business. It was about $20k. It was a huge gamble. But I had four years of experience.

I also continued my day’s work to make monthly payments. I created a multiplication stream of income to repay the balance faster. These balances are now $0, but I had to stand up, grind and shine. It’s been a while, but my business has been successful. If your business fails, you still have to pay for these credit cards.

Bottom line

Most people have to stay away from their credit cards because they can’t control their cash, and credit cards make it the worst. Use it only if you can afford to repay your balance every month. Remember that paying interest and fees is stupid. Don’t be silly. It is a great accounting tool and the perks are worth the discipline and responsibility.